Gold prices in Dubai showed a recovery, with the price of 24-karat rising by 4 dirhams to reach 498 dirhams per gram on Thursday morning. The market opening on Thursday was marked by a price of 498 dirhams per gram, which is higher than the 494 dirhams recorded at the close of trading on Wednesday.
Other gold varieties also traded higher: 22-karat was priced at 461.25 dirhams per gram, 21-karat at 442.25 dirhams, 18-karat at 379 dirhams, and 14-karat at 295.75 dirhams.
Globally, spot gold increased by 0.44 percent, reaching $4132.5 per ounce. Silver decreased by 0.02 percent and traded at $60 per ounce.
Financial analyst Vijay Valecha noted that both metals continue to face difficulties due to the strengthening dollar and rising yields, creating volatility in the gold market. Valecha, who is also the Chief Investment Officer of Century Financial, stated that 'the 10-year yield remains above 5.30 percent, and its negative correlation with gold has recently strengthened due to fiscal concerns.'
He added that despite the decline in precious metal prices at the end of September, capital flows into exchange-traded funds (ETFs) remained positive. In the last trading session, ETFs added 81,000 troy ounces of gold to their reserves, bringing net purchases for the current year to 2.19 million ounces. This marked the third consecutive day of growth. Furthermore, support is provided by central bank purchases, as 39 tons were added in August compared to July.
From a technical perspective, the analyst pointed out that the $4100–$4120 level is a critical support level for gold, as it was recovered after a failed breakout in the previous session. This level also coincides with an uptrend line that started from lows in June. Secondary support is around $4050. Conversely, resistance is likely to be around $4180, near yesterday's high, followed by the $4220–$4250 zone. This zone aligns with the VWAP tied to the September Fed meeting and the 20-day moving average. He recommended looking for short-term sell positions in case of a breakdown and pullback from $4180, using $4120 as the initial support and profit target.
Regarding silver, the $60–$60.2 level acts as critical support, while $61.8–$62 is the initial resistance, followed by the $63 mark (VWAP tied to the September Fed decision). Short-term sell targets are recommended in case of a breakdown and pullback from $61.8, with initial support and profit target at $60.2.